With stock markets at record highs and bond yields near historic lows, hedged equity and structured outcome solutions have become increasingly popular. But as new alternatives flood the market, investors are understandably overwhelmed by their choices.
In the upcoming webcast, Know What You Own: Understanding the Risks and Rewards of Hedged Equity, Swan Global’s client portfolio manager Marc Odo and COO and portfolio manager Rob Swan will discuss the risks and rewards of hedged equity products.
“Diversification is not enough; seeking a smoother investing experience demands an active approach,” according to Swan Capital Management. “Redefine your portfolios with our innovative and time-tested hedged equity process, now in a new ETF structure.”
Specifically, the Swan Hedged Equity U.S. Large-Cap ETF (HEGD) aims to address long-term investors’ need for capital appreciation while hedging against the risks and volatility associated with today’s often unsteady markets. This differentiated solution combines the benefits of the low-cost ETF investment structure with an actively managed hedging strategy.
“HEGD is built upon our innovative and time-tested Always Invested, Always Hedged process launched in 1997. A distinct blend of passive investing and active risk management, all in one ETF,” according to Swan Capital Management.
The fund is anchored by Swan’s proprietary Defined Risk Strategy (DRS), a time-tested, disciplined approach that utilizes hedged equity and options-based strategies seeking to help investors grow their capital while mitigating downside risk. HEGD pairs the benefits of ETFs with actively managed options strategies, potentially resulting in a less volatile investment experience and more consistent returns.
The Swan Hedged Equity U.S. Large-Cap ETF provides a distinct blend of passive investing and active risk management. The ETF is always seeking to participate in S&P 500 returns via S&P 500 equity ETFs. Additionally, it is always hedged against market risk via long-term put options purchased at or near the money.
“Markets tend to go up over time, so we’re always invested,” according to Swan Capital Management. “Severe losses can derail investors’ goals, so we’re always hedged.”
Financial advisors who are interested in learning more about hedged equity strategies can register for the Tuesday, November 30 webcast here.